KUALA LUMPUR: MIDF Research forecasts a higher industrial production index (IPI) growth of 2.9% for 2020, compared to 2.4% for 2019.
In a note yesterday, it said it expected industrial activities to expand at a solid pace underpinned by recovery in mining output and strong growth of domestic-oriented industries.
The research house said slightly better commodity prices and the release of Petronas’ Floating Liquefied Natural Gas - 2 (PFLNG - 2) facility would support the rebound in mining output in 2020.
“Steady domestic demand and improved government and private investments would spur domestic-oriented industries next year, ” it said.
It said manufacturing output would continue to grow at a modest pace due to challenging external demand with the US gearing up for its presidential election in November.
Meanwhile, MIDF Research expects the exports trend to rebound marginally especially with the support of commodity outbound shipments.
“Looking ahead, we also foresee a slight recovery for export-oriented products in the first quarter due to positive sentiments from US President Donald Trump and Chinese President Xi Jinping’s ‘Phase One’ trade deal to be signed in mid-January this year.
“This is confirmed by the upward trajectories shown by global and emerging economies’ manufacturing PMI (Purchasing Managers’ Index) figures, ” it said.
It also predicts that sales of domestic-oriented manufacturing products would pick up in light of firm and strong domestic demand. — Bernama
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